Market Analysis Report Peyton Approved
Acc 308 Milestone One
Lisa L. Stiles
This document is the Market Analysis Brief for the company Peyton Approved for the
years of 2016 and 2017. It includes the financial ratios for these years. They are as followed
Current Ratio, Quick Ratio, Accounts Receivable Turnover, Inventory Turnover, Gross Margin,
Return on Sales, Return on Equity and Return on Assets. These ratios measure how well a
company is performing and the effectiveness against the competition.
2017
2016
Current Ratio (working capital) 5.76
5.18
Quick Ratio
5.57
4.60
A/R Turnover
5.87
5.53
Inventory Turnover
7.61
8.81
Gross Margin
68%
66%
Return on Sales
53%
52%
Return on Equity
125%
161%
Return on Assets
101%
109%
Between 2016 and 2017 improvements were seen for Peyton Approved in most of the
ratio's categories. Current Ratio raised itself from 5.18 in 2016 to 5.70 in 2017. Peyton Approved
with increase shows they are abled to cover their share of current liabilities. Increasement was
seen in quick ratio in 2016 the ratio was 4.60 in 2017 it increased to 4.89. Peyton Approved can
receive cash quickly from their liquid assets while controlling short-term liabilities that arise
Accounts receivable turnover ratio increased from 5.53 in 2016 to 5.91 in 2017. Peyton
Approved could collect cash from their accounts receivable, this leads to less uncollected
accounts in their business dealings. There was an increase of 2% in the gross margin. Rising
from 66% in 2016 to 68% in 2017. The percentage rise is marginal but shows Peyton Approved
increased the margin of profit they are receiving from the revenue they are collecting. An
increase here of any type is considered a success. Return on sales increased by 1% going from
52% in 2016 to 53% in 2017. This shows Peyton Approved is steadily improving and showing
growth, though it is not substantial it is still a gain and movement in the right direction. A drop in